About IRMAA
Key points about IRMAA:
IRMAA is a surcharge on Medicare Part B and Part D premiums for high-income beneficiaries, effectively reducing their subsidy and increasing their retirement costs. While not classified as a tax, it can impact your marginal tax rate, especially on withdrawals from pre-tax retirement accounts.
Significant cost increase:
The surcharge can add hundreds of thousands of dollars to Medicare premiums, over the course of retirement. Making it a substantial extra cost for high-income earners.
Sudden impact:
People may not realize they will be subject to IRMAA until they receive their Medicare notice, potentially causing financial stress.
Based on past income:
IRMAA is calculated using your income from two years prior, meaning even if your income drops in retirement, you might still be subject to the surcharge.
Small income changes can trigger large premium increases:
The income thresholds for IRMAA are relatively narrow, meaning even a small increase in income could result in a large jump in your Medicare premium.
IRMAA Education for Agents
Our website provides expert-led courses designed to educate agents on helping clients navigate and minimize the IRMAA (Income-Related Monthly Adjustment Amount) surcharge. Learn effective strategies to reduce Medicare Part B and Part D costs, optimize retirement income planning, and deliver valuable financial guidance to your clients. Empower yourself with the knowledge to protect your clients from unexpected Medicare expenses.